BE10-2 Rich Castillo Company incurs the following expenditures in purchasing a truck: cash price $30,000, accident insurance $2,000, sales taxes $2,100, motor vehicle license $100, and painting and lettering $400. What is the cost of the truck?
Q: Carley Company purchases a new delivery truck for $45,000. The sales taxes are $3,000. The logo of…
A: Capital expenditure: It is the cost acquired from fixed assets. It includes of cost of purchase and…
Q: Speed-ee Delivery is purchasing a new truck for its fleet. It pays the following costs at the time…
A: Property, plant, and equipment are tangible fixed assets. These are depreciable assets which means…
Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costsamounted to…
A: Fixed assets are assets that are held or acquired by the business for longer period of time. For…
Q: Metlock, Inc. purchased a delivery truck for $30,000 on January 1, 2022. The truck has an expected…
A: Units-of-activity method is one of method used to calculate depreciation expense, this method is…
Q: mac E9-2 Benedict Company incurred the following costs: 1. Sales tax on factory machinery purchased…
A: Cost accounting is a branch of management economics that aims to capture a company's total cost of…
Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to…
A: Capitalization is the process by which the long-term asset is recorded on the balance sheet and its…
Q: During 2020, ABC Co. incurred these expenditures relating to its plant building: Continuing and…
A: Option b is correct
Q: The following expenditures were incurred by Grouper Company in purchasing land: cash price $80,000,…
A: Land: Land has an indefinite life that is used over time and is depreciated. Land is considered to…
Q: Wildhorse Co. incurs these expenditures in purchasing a truck: cash price $29,260, accident…
A: Given: Cash price = $29,260 Sales tax = $1,320 Accident insurance = $2,220 Motor vehicle license =…
Q: E10-7 Brainiac Company purchased a delivery truck for $30,000 on January 1,2008. The truck has an…
A: Depreciation: Depreciation is a method that reallocates the cost of a tangible asset over its useful…
Q: Blossom Company incurs these expenditures in purchasing a truck: cash price $20,000, accident…
A: Given: Cash price = $20,000 Insurance = $1,500 Sales tax = $1,100 License = $200 Painting and…
Q: Curry Corporation began operations in the current year. During year it incurred the following…
A: Acquisition cost refers to the purchase cost of inventory or materials. It not only includes the…
Q: Anoy Inc., exchanged a trucj that cost $30,000 (now 50% depreciated) for a similar truck with an…
A: Book value of old truck=Cost-Depreciation=$30,000-$30,000×50%=$15,000
Q: capitalized amount of the equipment?
A: Meaning of Capitalized costs Capitalized costs includes all the fixed costs incurred in purchase of…
Q: Warren Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted…
A: Fixed assets should be recorded at cost of acquisition. Cost includes all expenditures directly…
Q: Wildhorse Co. incurs these expenditures in purchasing a truck: cash price $24,300, accident…
A: Cost of the Truck = Cash price + Sales tax + Painting and lettering
Q: E9-8 Here are selected 2014 transactions of Cleland Corporation. Jan. Retired a piece of machinery…
A: Depreciation is the decrease in the value of asset due to usage, wear and tear, passage of time or…
Q: ABC Co purchases a Bus at a price of OMR 25,000 and incurred other expenditures such as…
A: Cost of bus to be capitalised = Purchase price + Non refundable taxes + paitning of truck
Q: Hummer Company purchased a delivery truck. The total cash payment was $30,000, including the…
A:
Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to…
A: Costs to be capitalised are total costs incurred on acquisition or purchase of fixed assets and all…
Q: Crane Company incurs these expenditures in purchasing a truck: cash price $22,480, accident…
A:
Q: E10-17 Determining the cost of assets Lawson Furniture purchased land, paying $65,000 cash and…
A: Cost of the assets will include purchase price of assets along with all costs necessary to bring the…
Q: On December 31, 2020, Scarce Company showed account for machinery that it has assembled for own use.…
A: Journal entries refers to the process of recording the financial transactions in the accounting…
Q: Roche Biotech provides company cars for its salespeople that cost an average of $25,000. Using the…
A: As per MACRS 5 year table, the depreciation rate applicable for Year 2 = 32%
Q: What total amount should be capitalized as cost of the machine?
A: Original price is the whole charge related to the acquisition of an asset. The authentic price of an…
Q: truck
A: Meaning of Cost of the Asset Cost of the asset includes all the costs that are incurred to bring the…
Q: On August 1, 2015, Hulu Corporation purchased an equipment with an invoice price of Php60,000. Other…
A: Capitalisation of Expense incurred to bring assets for its intended use. Including Purchase cost ,…
Q: On January 1, 2017, Zircon Enterprises purchased a piece of equipment with a list price of $60,000.…
A: The term "acquisition cost of equipment" refers to the net invoice price of the equipment, as well…
Q: A company provides each of its directors with a car. It has purchased these at £35,000 each. After 4…
A: Residual Value after 4 years = Cost x 40% = £35000 x 40% = £14000 Annual Rate of Depreciation = 1 -…
Q: sheffield Corp. incurs the following expenditures in purchasing a truck: cash price $53,000,…
A: Note: Cost of accident insurance and motor vehicle license will not be capitalized with the cost of…
Q: GRACE Co. recently acquired two items of equipment. Acquired a press at an invoice price of…
A: In the given question, we were given two equipment, one of which is a press machine and the other is…
Q: Sandhill Co. purchases a new delivery truck for $78000. The sales taxes are $4400. The logo of the…
A: Note: Truck’s annual license is not included in the cost of the new truck because it will be paid…
Q: Monty Corp. incurs these expenditures in purchasing a truck: cash price $46,000, accident insurance…
A: Calculation of Cost of the truck: Cost of the truck=Cash price+sales taxes+painting and…
Q: 1 Ross Company incurs these expenditures in purchasing a truck: cash price $25,000, accident…
A: Answer: Cost of Truck include following expenditure: Cash Price $25,000 Sales tax $1,080 Total…
Q: On January 1, 2022, Martinez Company purchased the following two machines for use in its production…
A: Cost that is measured for property plant and equipment includes all the costs that are directly…
Q: On January 1, 2020 Gingerbread, Corp. purchased a reindeer merry-go-round as an attraction to draw…
A: Capitalized Cost of Asset included all those expenses which are incurred to make the asset ready to…
Q: Ace Lumber Co. purchased a truck and had the following outlays. How much is the cost of the truck?…
A: Cost of the truck = purchase price + sales tax + preparation and delivery + insurance during…
Q: BE10-3 Flaherty Company had the following two transactions related to its delivery truck. 1. Paid…
A: Recording of the transaction in the books of accounting in a chronological order is termed as…
Q: The Dalton Company purchases a new delivery truck for $20,000. The sales taxes are $1,000. The logo…
A: Cost or expenditure made on fixed assets can be categorized in two parts revenue expenditure and…
Q: The following costs pertain to a new delivery truck that was purchased on March 31, 2020. All costs…
A: Capitalization cost includes all those expenses which are incurred to make assets available to use…
Q: Alpha Car Rental purchased 5 cars for a total of $200,000 three years ago. Now it is replacing the…
A: Cash flow statement represents the cash inflow and cash outflow of the company.
Q: Reem Company purchases a new delivery truck for $56,000. The sales taxes are $3,000. The logo of the…
A: Cost of truck = Purchase Price + sales taxes + logo painting cost + safety testing
Q: A corporation uses a type of motor truck which costs P 250,000, with life of 2 years and final…
A: The annual cost method helps in comparing two different projects having different periods. The…
Q: Curry Corporation began operations in the current year. During the Cur it incurred the following…
A: Costs of purchase refers to the cost that is incurred for purchasing the materials and it also…
Q: An old automobile is traded for a new automobile with a list price of $30,000. The old automobile…
A: Trade-in allowance indicates the reduction in the price of assets allowed by the seller. This amount…
Q: An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for…
A: Book value of cooler on date of sale=Recorded cost -Accumulated depreciation=P 150,000 -P…
Q: The following data relate to a firm's purchase of a machine used in the manufacture of its product:…
A: Total acquisition cost = Invoice price + Sales tax - Cash discount + Feight + Insurance cost while…
Q: Crane Ltd. incurs these expenditures in purchasing a truck: invoice price $42,860; installation of a…
A: Cost of property plant & equipment includes purchases price , taxes ( if credit not available )…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- sheffield Corp. incurs the following expenditures in purchasing a truck: cash price $53,000, accident insurance $4,500, sales taxes $2,900, motor vehicle license $100, and painting and lettering $400. What is the cost of the truck? Cost of the truck $Blossom Company incurs these expenditures in purchasing a truck: cash price $20,000, accident insurance (during use) $1,500, sales taxes $1,100, motor vehicle license $200, and painting and lettering $1,600.What is the cost of the truck? The cost of the truck $Enter a dollar amountCrane Company incurs these expenditures in purchasing a truck: cash price $22,480, accident insurance (during use) $1,570, sales taxes $1,690, motor vehicle license $590, and painting and lettering $2,460.What is the cost of the truck? The cost of the truck $Enter a dollar amount
- Blossom Company incurs these expenditures in purchasing a truck: cash price $26,470, accident insurance (during use) $2,080, sales taxes $1.660, motor vehicle license $570, and painting and lettering $2.190 What is the cost of the truck? The cost of the truck $Wildhorse Co. incurs these expenditures in purchasing a truck: cash price $29,260, accident insurance (during use) $2,220, sales taxes $1,320, motor vehicle license $640, and painting and lettering $1,870.What is the cost of the truck? The cost of the truck $Wildhorse Company incurs these expenditures in purchasing a truck: cash price $46,000, accident insurance (during use) $2,200, sales taxes $4,400, motor vehicle license $300, and painting and lettering $1,700 What is the cost of the truck? Cost of the truck $
- 1 Ross Company incurs these expenditures in purchasing a truck: cash price $25,000, accident insurance (during use) $2,000, sales taxes $1,080, motor vehicle license $400, and painting and lettering $2,800. What is the cost of the truck?Concord Corporation incurs these expenditures in purchasing a truck: cash price $54,000, accident insurance (during use) $3,900, sales taxes $1,800, motor vehicle license $400, and painting and lettering $1,600. What is the cost of the truck? Cost of the truck $Sheffield Corp icurs these exoenditures in purchasing a truck :cash price $ 53000, acvident insurance (during use) $4, 500, sales taxes $2,900, motor vehicle license $400, and painting and lettering $1,600. what isthe total cost of the truck?
- This is not correct -The expense should include the painting and lettering The total cost is 27,800? Please advise. Am I correct? 1 Ross Company incurs these expenditures in purchasing a truck: cash price $25,000, accident insurance (during use) $2,000, sales taxes $1,080, motor vehicle license $400, and painting and lettering $2,800. What is the cost of the truck? check_circle Expert Answer thumb_up thumb_down Step 1 Answer: Cost of Truck include following expenditure: Cash Price $25,000 Sales tax $1,080 Total cost is $ 26,080. Ross company should not include the expenses related to accident insurance, motor vehicle license and painting and lettering in cost of the truck by capitalizing the same as they are expensed in the period in which they are incurred. Step 2 Therefore the cost of truck in cash price and sales tax being paid in acquiring the truck by the Ross company.DD Company purchases a delivery truck at a cash price of Rs=840,000. Related expenditures are sales taxes Rs= 26,400, painting and lettering Rs=10,000, motor vehicle license Rs= 1200, and a three-year accident insurance policy Rs=30,000. Compute the cost of the delivery truck?Wildhorse Company purchased a delivery truck. The total cash payment was $36,270, including the following items. Negotiated purchase price Installation of special shelving Painting and lettering Motor vehicle license Annual insurance policy Sales tax Total paid $31,200 1,430 1,170 130 650 1,690 $36,270 Calculate the cost of the truck and the operating costs of the truck.